Atlantic Richfield - Formation of subsidiary, etc

RNS No 0863u
ATLANTIC RICHFIELD COMPANY
27th May 1998


                 ARCO Forms Integrated Power Projects Company;
                      Harold B. Tyber Appointed President

LOS ANGELES, May 27 /PRNewswire/ -- ARCO (NYSE: ARC) today announced the
formation of ARCO Integrated Power, Inc., a wholly-owned subsidiary, that will
manage ARCO's development and operation of power generation projects around
the world.

ARCO Executive Vice President Anthony G. Fernandes said: "The decision to
consolidate and expand ARCO's power generation activities is a natural
consequence of the company's success as a global oil and gas producer.  By
using a proactive approach in the development of downstream markets, such as
electrical power generation, ARCO can realize the full economic potential of
our exploration and production activities.  The new power organization will
work closely with ARCO's staff and with current and potential customers to
provide integrated energy solutions in our major regional focus areas.  Such
an integrated approach will cut years off the standard project development
cycle and facilitate ARCO's push for environmentally sound solutions to the
world's energy needs.

Harold B. Tyber has been appointed president of the new venture, which
will be based in Los Angeles.  William "Si" Garrett, former president of
Tenneco Power, has accepted the position of Senior Vice President, Business
Development.  John Handlin, former business manager for ARCO Western Energy,
joins the new division as Vice President, Finance, Planning, and Control.

Before assuming his new post, Harold Tyber was Vice President of Marketing
and Business Development for ARCO Coal Company, and, more recently, head of
integrated fuel and power for ARCO Global Energy Ventures.  He has more than
two decades of experience in serving the energy needs of the electrical power
industry.

Tyber said: "Integrating our involvement across the full span of energy
production and conversion accelerates our own ability to develop new reserves
in emerging markets.

"Our initial focus will be in areas of the world where ARCO can provide
fuel resources to facilitate clean and cost-competitive energy production.  By
bringing ARCO's power skills and resources together in a single, centralized
division, we can facilitate the transfer of talent and knowledge across
regions and enterprise centers."

ARCO is an integrated oil and gas company headquartered in Los Angeles
with offices worldwide and regional centers in Beijing, Jakarta, Hong Kong,
Singapore, London, Dubai, Moscow, and Caracas.  ARCO's global operations
include all aspects of exploration, production, and marketing of crude oil,
natural gas, and natural gas liquids, as well as power generation and the
refining, marketing, and transportation of petroleum products.  ARCO is also
the majority owner of ARCO Chemical Company and Vastar Resources, Inc.

SOURCE ARCO
/NOTE TO EDITORS: For a menu of ARCO's news releases or to retrieve a
specific release, visit ARCO's website at http://www.arco.com on the
Internet./

/CONTACT: Al Greenstein, 213-486-3384, Tom Goff, 213-486-2456, or Harold
Tyber, 213-486-3442, all of ARCO/
/Web site: http://www.arco.com/


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